Friday, December 30, 2011

Goodbye 2011, Hello 2012

As I sit here slowly drinking my chai tea, I ponder the past year and my successes and failures as a manager.  Many times I have heard business owners and managers make difficult decisions followed by the response: it's not personal, it's just business.  And although they are probably telling the truth, in all honesty, that statement is likened to a child breaking a toy while trying to figure out what makes it work and saying, "I'm sorry, I couldn't help it".  Maybe the child was attempting to fulfill an insatiable desire but nonetheless, he still broke the toy.  As a manager, I have to look back over the past year and ask myself if I have allowed business decisions I have had to make affect anyone in an adverse way.  If I decided to not waive a late fee, did I do it in a manner that was demeaning to my client or did I offer explanation as to why it would not benefit either of us?  If I was forced to auction a unit, did I do everything possible to ensure that person would not lose their items?  Did I represent our company well while also making the customer still feel they are very important to us?  I wish I could say "yes" in every instance.  Let's take a look at some bad customer service:



Ok, so that was truly bad customer service. Perhaps I have done a lot more right than I realized.  In any event, It has been a year of learning for me.  I can look at our numbers and pat myself on the back and say, well, we went from 56% occupancy to 80% occupancy in record time, so that makes up for all of my mistakes.  But, I can't do that.  I remember every single instance I wish I would have handled differently.  I see 80% and think, if I would have handled that differently, we might be at 90%.  Our customer service at Star is top of the line.  We truly love our customers and love serving our customers.  However, there are always those instances when a change in words or inflection would have been more suitable.  However, a handstand or cartwheel was probably out of the question, spending time in traction doesn't suit me well.   In any case, knowing this helps me to always strive to do better with each person.

With that being said, is it always easy being so nice to everyone?  Not really.  We all have days when we aren't feeling up to par and would rather hide under our desk than deal with another cranky customer.  But, the rewards by far always outweigh those moments.  With that, I can look back at 2011 as a year of learning and growth and look forward to 2012 as a new beginning.  Goodbye, 2011.  Hello, 2012.


Michelle Armstrong
Manager
Star Storage
816-765-7300

Tuesday, December 20, 2011

Instantly Gone: What To Do When They Abandon You (Self Storage)

So you've been overly honest with your customers.  You want them to know they can trust you and your business.  This is a good thing.  We need to establish that from the beginning.  We go over the fine print of the lease with them and cover everything we would hope someone else would share with us if we were the customer.  However, there is also a fine line that can be so easily crossed.  Many of your customers have had storage before and they know the routine.  Naively, you may think this is all new to them (it's OK to assume they don't and still give them your sales speech) and they play along.  So, what are some of the signs they have been down this road before?  And when these signs reveal themselves, when do you place the cork in your mouth?  Because now, one month later, some how, some way, you have just found out that....you have been duped.....



I've been in self storage management for a little less than a year.  I have been in marketing and sales for several years and I can usually spot a fast talker a mile away.  However, my heart really softened with all of the stories of people who have been hit hard by the economy.  I also have a tendency to be transparent.  I love people and serving them is a priority.  However, working in self-storage I have learned that my client base is a lot different than that of tourists or philanthropists who are generally well-seasoned in their business/pleasure endeavors.  It actually wasn't until about a month ago when I realized my transparency was causing me to be "scammed" on more than one occasion by these "frequent movers".  Don't get me wrong, there are always exceptions, I don't want to lump everyone into the same category.

Bottom line is, I really like meeting new people and selling them a good product.  And I like the challenge of working with customers to give them the best deal that won't cost us an arm and a leg in the long run.  Now, granted you cannot control what people do or even predict their motives but what they say should motivate appropriate changes to your responses.  And you need to be ten miles ahead if at all possible.  You cannot be in panic mode that you are going to lose the sale. If you go that direction, you will fall into a "loose lips, sinks ships" mode.  Although that ship may seem to stay afloat for a little while, it's going to sink.

The last three months we have had an amazing special going on.  A $25 refundable security deposit will get your first month free on a 10X10.  Sounds easy enough to sell, right? And yes, it pretty much is. We sold out in 6 weeks. So, when they come in and say they want this, move them in and keep the chat to a minimum. Be cordial and attentive to what they are saying and be sensitive to their needs and situation but don't go overboard.  Go over the lease with them, thank them and let them know you are here for them if they have questions.  Most of your customers will be fine with that.  And if it goes that easily, you have done well.  But, when do you know you have a seasoned self-storage veteran in your midst?  Sometimes they will let you know or you just know because they have few questions and are very prepared. If they are seasoned but don't want you to know, these are the questions they will ask:

1)  Do I have a grace period to pay rent?
2)  How long before a late payment is assessed?
3)  How long before my lock is cut?
4)  How long before my items are auctioned?
5)  If I am late, will I be locked out and on what day, if that's the case?
6)  When do you overlock the units?

Your lease may or may not have these stipulations covered and you should ALWAYS check your state laws prior to making any changes.  Before you consider changes to your rules or lease agreement, perhaps you should check how you need to respond to the above questions:

1)  Do I have a grace period to pay rent? (if you have a grace period...):

"The rent is always due on the 1st."

They persist:  "But, is there a grace period?"

"The rent is always due on the 1st, this saves you from getting late fees assessed to your account" but thanks for asking.

2)  How long before a late payment is assessed?

"The late payment will be assessed on the _______ day of the month.  However, keep in mind your rent is due on the 1st and the security gate won't allow customers who are late to have access"

3)  How long before my lock is cut?

"I appreciate your concern but if you pay on time each month, it won't get to that point.  Remember that your payment is due on the 1st."

4)  How long before my items are auctioned?

See number 3

5)  5)  If I am late, will I be locked out and on what day, if that's the case?

"Yes, you will be locked out.  Just remember to pay by the 1st of the month and it won't be a concern for you"

6)  When do you overlock the units?

See number 3


I don't want to ever encourage anyone to assume everyone has an ulterior motive. More than likely, they do not.  However, establishing boundaries from the beginning is always a good idea in any business relationship.  As the owner of our facility always says, we wouldn't want to encourage bad behavior from our children, so why would we encourage bad behavior from anyone else?  If someone has a pattern of always being late and learning how to buck the system,  then they should know the established boundaries where your system is concerned.  If this is put into place from the beginning then you will have no issues and you will begin to have more dependable customers as well.

Most of all, you want to make the environment a good place for those who are always on time and always play by the rules.  If this means having the occasional potential customer change their mind, then that's OK, too.  You will make up for it with a shorter collections list in the long run.  You will also have fewer "surprises" when doing your facility unit walk-thru.

And finally, if your state laws allow, consider removing your grace period (please check your state laws, not all states allow this) so they are unable to enter your secured facility until they pay.  Also, consider a $25 security deposit refundable only if they give a 7 day or longer notice.  We have been charging a $25 refundable security deposit for quite a while and no one seems to mind at all.  Get rid of the Admin fee.  There will be enough people who wait until the last minute and forfeit their deposit to make up for the admin fee loss.  Offer an incentive for using auto-pay.  Using auto-pay is one of the most effective ways to always make certain your rent is collected.  Also, most people won't want it taken out if they move so that prompts them to let you know in advance.

I've shared all of this with you because I have learned the hard way.  I have been duped not once, not twice, but several times in the past few months and I want you to know you don't have to fall 100 times before you learn to walk.  I've tried to figure this out and have researched what other facilities do to stop this and am glad to say I'm not the only one.  I don't want to stay on that list of facilities who are still trying to figure it out and I don't think you want to be on that list, either.  Let's break this cycle and make some positive changes for the self-storage industry.  Climb on board with me and let's ride this train together.

Michelle Armstrong
Manager
Star Storage
Grandview, Missouri
816-765-7300

Friday, December 9, 2011

Are You Prepared For The Worst? When Technology Fails

When I walked into work on November 28, I had a little skip in my step and a little whistle on my lips.  It had been a great November and we had three days to close out the month with a higher net than we had closed in our history. About midway through the morning I noticed the computer was acting strange and then I got the blue screen of death. Ok, so that's happened before.  Probably a simple driver issue.  So, I rebooted the system.  Upon rebooting, I could not get to the manage portion of my computer.  Using all of my computer nerd knowledge, I could not find the issue.  And then I noticed our security gate software wasn't working, our management software went next and then the Internet crashed.  It was like watching a technology apocalypse happen in front of my face. No virus, no funky little worm, nothing to be found whatsoever.  Our computer guy wasn't able to get here until later that afternoon.  There were beads of sweat forming on my upper lip, my heart was racing and my stomach felt like it did when I saw my best friend with my ex.    

So, what happens when technology fails?  I was totally prepared to lock the doors and hide under the desk when someone knocked.  Yes, I admit I was being a coward.  As much as I love my customers, there are a few I wouldn't like to see angry.  However, I knew this wasn't the right decision to make.  I took a swig of my iced chai and slamming it down on the desk said, "Let's do it!"  I called the owner and we agreed to do everything the old fashioned way.  With a deep breath, I decided to face this like a real woman and take something to calm my nerves: I reached into my lunch bag and pulled out the chocolate.  Chai in one hand and chocolate in the other, it was time to make this work.  

As the day went on, it was business as usual.  I took payments and used paper receipts (always good to have carbon copy receipts on hand).  I rented units and no one really seemed to mind that our system was down.  For those paying their late fees, I gave them a temporary code to get in and out of the gate until I could update their payments in the system.  The computer issues actually took close to three days to resolve (we have a great computer guy, he actually saved us from buying a new system).  I was still getting caught up over the weekend because the 1st of the month fell on the first full day of having a totally restored computer.  The biggest saving grace was the ability to close out the day on the last day of the month with only a few nets short of a goal we have long been anticipating (I am happy to report that goal was reached yesterday).  

Because we are a locally owned facility with two locations and one office to run them both, it is imperative to make certain we are backed up in the event of a technology breakdown.  We pay for a monthly service called Carbonite (http://www.carbonite.com/en) and it is more than worth the cost. There is a 30-day trial available. We also keep carbon receipt books as well.  Make certain you have a paper shredder in the event someone gives you their credit card information. You can shred it upon computer recovery.  Have a smile on your face and a good attitude whenever a customer walks in.  They will know it if you are nervous.  Be honest and say "I apologize but our system is down and we are working on getting it back up, would you mind if I write you a receipt and I will let you know as soon as the system is up and it is posted?"  Or laugh it off (my way of doing things) and say, "Ahhh, technology, don't you just love it?  Our system is down but we are working on getting it back up again.  In the meantime, we have everything we need to take care of your needs and as soon as the system is back up, we will update everything for you".  

I honestly thought I would have some irate customers last week but everything went so smoothly that I know we could operate for a few days the old-fashioned way again if it were necessary.  Now, you will have some customers who are frantic that their payment won't be posted on time and they will get a late fee.  If our system is down and they have paid, we are responsible for noting the date and removing that late fee if it goes that far.  It will take some legwork and you will have to make some follow-up calls.  I made it through the techopalypse, so can you.  I have a quote by Chris Prentiss posted on my desk that says, "Everything that happens to me is the best possible thing that can happen to me".  It is right in front of me so I have a constant reminder (even when I don't want to be reminded) that there is a purpose and learning experience from all things that happen to us in life.  

So, now I can say that my experience last week turned out to be very positive and my confidence was boosted to a much higher level.  I believe that if this happens to you, and it very well could if it hasn't already, you will be able to handle it well and make it a very profitable experience.  You will learn that in turn for the compassion you have had for your customers in the past, they will now return that compassion to you.  And if they don't just remember this: "How people treat you is their karma; how you react is yours." ~ Wayne Dyer.  One more last thought before we part ways today is this:  Just when you think the worst possible thing is happening to you, there is always something worse that can trump that.  So put on a smile and think happy thoughts, technology woes are never here to stay.  

Michelle Armstrong
Manager
Star Storage
816-765-7300


Friday, December 2, 2011

Finding Inspiration to Blog about Self Storage - Guest Blog

I saw Michelle’s recent post on Star Storage about overcoming writers’ block and thought to myself, that’s definitely something I can relate to. Blogging one of those things, everybody is telling you that you need to be doing it but where do you find the time and the inspiration to keep it up-to-date with fresh, interesting content.

Now, some people say how can you blog about storage and yes, hundreds of blog post-titles don’t necessarily spring to mind; but if this is something you live and breathe everyday then it shouldn’t be a problem. I can guarantee you’ll be able to talk all day about your business to whoever will lend an ear – the difficulty is transforming this into interesting posts and knowing where to look for new ideas.
Here’s my personal advice on what I do to generate ideas for blog content and how I make sure these end up going live on the World Wide Web.

Mind-set
You always need to be thinking: what do I know about what I’m doing? Can I share this with others? Will it be useful? You will be surprised at the amount you pick up that’s unique insight to you and, if you share, to others as well.

There are content ideas all around you – everything from what you do to go the extra mile for your customers to how you organise the most tedious of administrative tasks. Get in the mindset where you’re thinking about why you do what you do and it’ll improve the way you work, not just your blogging!
Don’t go chasing readers or followers – do it for its own sake, writing down your thoughts will help to crystallise them in your own mind. One of my favourite videos is Seth Godin talking about how important blogging is:
There is some sound advice here. What matter’s about blogging is the ‘meta-cognition’ of what you’re going to say – how do you explain yourself; what you’re doing and why you did something.


Capturing Your Ideas
Once you’ve got yourself in the mindset that always bears in mind what could be feasible for a blog post, you need to make sure you capture these ideas and make them happen. I’ve found a really great tool for helping to do this: it’s called Evernote (there’s a quick introduction here).

Evernote is basically a notepad with one major difference: it allows you to access your ideas anywhere you’ve an internet connection and Evernote installed. The problem I often have is that the best ideas come in the most unusual places. With Evernote you can capture them on your phone and make sure they never slip your mind.
Anyway, they are my two tips for finding inspiration for blogging about self storage and making sure you follow through with all your post. Would love to hear other people’s thoughts, tips and ideas!



We thank our guest Blogger, Michael Smith from Safestore in the UK, this week for sharing his thoughts with everyone.  If you are in the UK and in need of storage space, please contact:
Safestore
We know the value of space
Safestore - The UK's No.1 for self storage

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Telephone +44 (0)20 8732 1500. Fax +44 (0)20 8732 1510www.safestore.co.uk
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